If you’re a merchant who accepts payments with cards, odds are you’ve asked yourself: “What is a good effective rate for credit card processing?” To be able to answer this question, we have to take a closer look at what these rates are, what they include, and how they’re calculated. If the percentage seems too high, there might be ways in which you can lower it. Let’s take a look.
With the number of payments via credit cards growing by the minute, merchants should acquaint themselves with potential risks associated with accepting such payment methods. One of those risks stems from the card not present transaction (CNP). Though completely legitimate by itself, it can land you in financial troubles if misused. Stay with us to learn the basics of CNP and improve and protect your business.
When searching for merchant services, the majority of business owners tend to pay particular attention to the nominal credit card processing prices offered by processors on the market. But to calculate the total cost of accepting cashless payments, the so-called effective rate, and to determine the most affordable one for your enterprise, you need to get the full picture of the various pricing models and cost components.
In today’s world of business, cashless transactions are a prevailing trend. But to accommodate them, you have to endure a whole plethora of fees: the processing fees for your merchant account, brands, and service providers. One way to take at least a part of the burden off your shoulders is to introduce a credit card convenience fee to your customers.
Even with the ever-growing market of credit card payment processing companies, fees associated with the usage of plastic are still a significant burden on many merchants. The solution for their woes may appear in the form of a cash discount program.
It is an easy and cost-effective way to reduce the processing expenses at the end of each month and leave you with more money and happier customers. However, you should also be able to tell the difference between a cash discount and a surcharge, which is prohibited in certain US states.
If you want to stay relevant on the market today, no matter what types of services or products you offer, you would have to introduce cashless payment options to your business. However, you should be familiar with the average credit card processing fees to be able to optimize your monthly expenses and set your business on a path to success.
The number of businesses that accept credit cards as a payment method is continuously growing. With that trend, there is also a surge of security risks associated with handling those transactions. PCI compliance is all about keeping every single payment on the highest security level and providing a safe environment for consumers and merchants alike.
Credit card factoring is a business practice in which a merchant account is used for transactions not related to the purpose for which it was set up and approved. If you are allowing another company to process their transactions via your account, you’re engaged in factoring. In most cases, it is an illegal activity that can put your business in peril and give you a lot more trouble than it’s worth.
It never hurts to know how much you can save.
